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Property or profile?

I have Google Analytics installed on my website and have a blog going live shortly which I also want to track.

The blog sits on a subdomain. It is built on Wordpress vs a custom CMS that the website is on but the idea is to have a seamless transformation helping traffic from blog to product pages on our website.

Should I install the same Analytics from our website onto the blog and then set up a few new filters or should i create a separate analytics property for the blog (or even a new profile)?

(sorry I should also add that the look and feel of both is very similar sharing main navigation links like SEOmoz - don't know if this makes a difference)

If it's related then I would keep the analytics key the same. The main reason to separate would be ease of use but if they work together that makes considerably less sense. You will want to track visitor movements between the sites and the same key will do that.

There are ways to make GA flag your blog visitors, incidentally. I'd look into some of the more advanced features of GA. That could make your job a lot easier by doing some work up front. I absolutely love advanced segments for tracking.

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